JAMS Mediation, Arbitration, and ADR (Alternative Dispute Resolution) services at JAMS. Arbitrators and mediators at JAMS. A bogus group of deceptive thieves.
JAMS Arbitration More Expensive Than Court, legally Violating Your Rights. Bogus Arbitration Awards So Costly That Many Victims of Consumer Fraud, Employment Discrimination Just Give Up.
Arbitration through private firms such as JAMS, although widely billed as a low-cost alternative to court, is actually far more expensive for consumers and employees who seek redress for discrimination, fraud and malpractice.
In fact, arbitration costs are so high that many people drop their complaints because they can't afford to pursue them, not to mention all the risks of potential corruption between arbitrators and attorneys, which by the way is perfectly legal in private arbitration.
Arbitration is a private legal system in which, practically speaking, no appeals are allowed. Arbitrators typically favor businesses, and arbitration awards tend to be much lower than jury verdicts, because arbitrators often favor companies that will provide them future business. They are not governed by any governmental agency and are immune from civil liability even if they are found to be corrupt or have committed fraud. The law protects them equally as a presiding judge with Absolute Immunity meaning no matter how corrupt, egregious or fraudulent the act, they are completely immune from ALL civil liability.
Mandatory arbitration clauses are increasingly being written into everything from basic equipment purchase forms to employment contracts. If consumers use a credit card or cell phone, or have health insurance, they likely have signed or received a form with fine print prohibiting them from suing the company and instead requiring them to take disputes to arbitration. Employees, too, are increasingly finding out too late that they have given up their right to sue, and instead must submit disputes with their employers to an arbitrator instead of a judge.
The cost of initiating an arbitration case is almost always higher than the cost of filing a lawsuit. For instance, an $80,000 consumer claim brought in the Circuit Court of Cook County, Ill., would cost $221, versus Judicial Arbitration and Mediation Services (JAMS) would charge up to $7,950.in requiring payment of these high fees up-front, arbitration destroys the benefits of attorney contingency fee arrangements, which allow plaintiffs to pursue cases without advancing funds.
Congress, the courts and the public have been victims of a disinformation campaign, portraying arbitration as an impartial and inexpensive alternative to the public courts. The grim fact is that for people who are victims of consumer rip-offs and workplace injustices, arbitration costs much more than litigation so much more that it becomes impossible to vindicate your rights plus it exposes you to risks of fraud or corruption between the attorneys and arbitrators.
Even if you prove in a court of law any corrupt or fraudulent acts between the arbitrator and/or attorneys during an arbitration, it is still extremely expensive and incredibly difficult to get the arbitration award reversed, if at all. Worse yet, your damages against the arbitrator or arbitration firm are not recoverable. You only remedy is to get the award vacated / reversed.
People caught in arbitration's net include home buyers complaining of shoddy workmanship, employees pursuing discrimination cases, patients seeking redress for poor care from their HMOs, small business owners in dispute with franchisors and consumers who are improperly billed.
A Los Angeles resident had to arbitrate a malpractice claim against her lawyer.
She was charged $5,000 for filing the claim a fee the arbitration firm refused to waive even though she was unemployed. Each fiscal quarter, the association charged her $150 for processing fees. When the law firm filed a motion to have the case dismissed, fees charged of $2,425 for the time the arbitrator spent handling it. More fees were added over time. Finally, when the bill hit $10,474, she dropped her claim because she could no longer afford to pursue it.
In another case, a family of Austin, Texas, had to take its dispute with a homebuilder to arbitration. The family was charged $3,500 as an initial administrative fee, followed by $1,375 in other miscellaneous fees.in the end, the family was awarded $18,819; however, the builder didn't have to pay the family's attorney fees or administrative fees. The arbitration fees cost the family $13,069 not counting attorney fees.
The report also found that:
Arbitration costs are high under pre-dispute arbitration clauses because there is no price competition among providers. Clauses in contracts lock consumers in to a specific arbitration firm. Companies that want to use arbitration to prevent consumers and others from asserting their legal rights have no incentive to arrange low-cost arbitration.instead, it is to their advantage to seek out the most expensive providers.
Arbitration costs will probably always be higher than court costs because the expenses of a private legal system are so substantial. The same support personnel that expedite cases at a courthouse, such as file clerks and court administrators, are also needed to manage arbitration cases. While it costs the Clerk of the Circuit Court of Cook County an average of $44.20 to administer a case, arbitration administrative costs per case averages $340.63, about 700 percent more.
Arbitration saddles claimants with a plethora of extra fees that they would not be charged had they gone to court. For example, the one arbitration firm charges $75 to issue a subpoena, which is provided for free by courts. They also charge fees for discovery requests ($150) and continuances ($100), which are also free in court.
In closing, arbitration is truly just a legal scam where only the arbitration system wins and exposes its victims to incredible risks of being treated unfairly since arbitrators are not required to follow any rules or laws. They can charge enormous fees, violate your legal rights, be corrupt, and commit fraud with no repercussions hiding behind Absolute Immunity.
If you are considering arbitration, think twice before going down this path which typically favors itself and the people behind it. Nobody wins except the attorneys and arbitrators perpetuating one of the biggest legal scams in America's history.
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